KDM Shipping (WAR:KDM) Interest Coverage: 13.60 (As of Jun. 2018)


What is KDM Shipping Interest Coverage?

KDM Shipping WAR:KDM Interest Coverage is 13.60 as of Jun. 2018.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. KDM Shipping's Operating Income for the six months ended in Jun. 2018 was zł2.4 Mil. KDM Shipping's Interest Expense for the six months ended in Jun. 2018 was zł-0.2 Mil. KDM Shipping's interest coverage for the quarter that ended in Jun. 2018 was 13.60. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for KDM Shipping's Interest Coverage or its related term are showing as below:


WAR:KDM's Interest Coverage is not ranked *
in the Transportation industry.
Industry Median: 5.66
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

KDM Shipping  (WAR:KDM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

KDM Shipping Interest Coverage Related Terms

KDM Shipping Interest Coverage Historical Data

* Premium members only.

The historical data trend for KDM Shipping's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

KDM Shipping Interest Coverage Chart

KDM Shipping Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Interest Coverage
Get a 7-Day Free Trial 68.79 12.15 0.00 0.00 0.00

KDM Shipping Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 N/A No Debt 0.00 13.60

WAR:KDM vs ESEA, GLBS, SHIP: Interest Coverage Comparison

For the Marine Shipping subindustry, KDM Shipping's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

KDM Shipping Interest Coverage vs Transportation Industry

For the Transportation industry and Industrials sector, KDM Shipping's Interest Coverage distribution charts can be found below:

* The bar in red indicates where KDM Shipping's Interest Coverage falls into.


KDM Shipping Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

KDM Shipping's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, KDM Shipping's Interest Expense was zł-0.3 Mil. Its Operating Income was zł-2.0 Mil. And its Long-Term Debt & Capital Lease Obligation was zł0.0 Mil.

KDM Shipping did not have earnings to cover the interest expense.

KDM Shipping's Interest Coverage for the quarter that ended in Jun. 2018 is calculated as

Here, for the six months ended in Jun. 2018, KDM Shipping's Interest Expense was zł-0.2 Mil. Its Operating Income was zł2.4 Mil. And its Long-Term Debt & Capital Lease Obligation was zł0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2018 )/Interest Expense (Q: Jun. 2018 )
=-1*2.352/-0.173
=13.60

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 13.60 mean?
KDM Shipping (WAR:KDM) has a Interest Coverage of 13.60 as of Jun. 2018. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KDM Shipping and its competitors.
Is KDM Shipping's Interest Coverage too high?
KDM Shipping's current Interest Coverage is 13.60. The Transportation industry median Interest Coverage is 5.66. KDM Shipping's value of 13.60 is 140.3% above this industry median.
How does KDM Shipping's Interest Coverage compare to ESEA and GLBS?
KDM Shipping's Interest Coverage of 13.60 can be compared against companies in the Transportation industry. The industry median Interest Coverage is 5.66. KDM Shipping's value of 13.60 is 140.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KDM Shipping's current Interest Coverage of 13.60 is 140.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KDM Shipping and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KDM Shipping's current Interest Coverage is 13.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KDM Shipping stock overvalued right now?
KDM Shipping (WAR:KDM) has a current Interest Coverage of 13.60. The current Interest Coverage is 13.60 and 140.3% above the Transportation industry median of 5.66. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For KDM Shipping (WAR:KDM), the current Interest Coverage is 13.60 as of Jun. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

KDM Shipping Business Description

Address 3 Michael Koutsofta Street, Limassol, CYP, 3031
KDM Shipping PLC is engaged in the shipping industry. It mainly focuses on the bulk river-sea freight in the Black, Azov and Mediterranean Sea regions. In addition, it is engaged in cargo freight, ship repair, and trading in grain, corn, oil and barley. The principal cargo of the company includes Grain, Metal Scrap, Sunflower seed meal, Bran, Fertilizers, and Cement.